Borough President Vanessa Gibson sounds off on Bronx COVID business relief shortfall
NEW YORK -- Hundreds of applications to get small business loans in the Bronx during the pandemic were rejected by the city.
Only a small handful of loans went through compared to many more in Manhattan. CBS2 has learned a lot about the fallout, the outcry and search for solutions.
"Actually, I had to walk away from it," said Tyrone Robinson, owner of The Dugout.
Robinson blames losing his business to a combination of bad politics, governmental red tape and COVID-19. Those factors forced him to walk away from the bar right across the street from Yankee Stadium.
Someone else recently took over the place he opened in 2004.
"I tried like every avenue," Robinson said.
He says throughout the pandemic he was repeatedly denied grants and loans.
Debts, including back rent, multiplied to $500,000, while applications were rejected again and again.
"I got several excuses. One being, oh my business didn't exist. Another one is that I filed too many applications. Another one, I didn't have enough employees," Robinson said.
Now he learns two new audits by City Comptroller Brad Lander uncovered "inadequate oversight by the Department of Small Business Services," with two COVID-19 assistance programs for "zero-interest loans" and "partial payroll grants."
As the city mobilized in 2020 and kept thousands of local businesses afloat, the Bronx got the smallest piece of the pie.
"It's a reminder of some of the gaps in services and deficiencies," Bronx Borough President Vanessa Gibson said.
Gibson said what also angers her about the comptroller's audit is the finding that Manhattan got more than its fair share. Manhattan businesses received close to 57% of the loans, compared to 2.2% in the Bronx.
Part of the problem, according to Landers' office, is hundreds of loans and thousands of grants were provided on a first-come, first-serve basis, which may have favored the more business-savvy operations in Manhattan.
"I have friends that bars throughout Manhattan and all of them are still thriving," Robinson said.
"We will right this wrong. I am not going to accept Bronx businesses being shortchanged, ignored and denied opportunities," Gibson added.
Gibson said she's looking to get funding restored for owners unfairly denied in 2020.
The auditors recommended secondary reviews of all applications to ensure staff members are following procedures and determining eligibility correctly.